"One other concern, your fee structure and business model seem to encourage repeat loans, how do you avoid the situation where that goes horribly wrong?"

We do our best to ensure loans do not cause over-indebtedness by starting with very small amounts initially, and increasing credit limits only if high on-time repayment rates are maintained over time. In order to minimize the risk of borrowers taking out local loans in order to repay Zidisha loans, we do not allow credit limit increases if a large percentage of Zidisha loans are repaid in a short period of time.

In my experience, repeat loans have been a vehicle for increasing assets and revenue over time, not for increasing indebtedness. Here are a few among many examples:

http://p2p-microlending-blog.zidisha.org/2014/03/15/spotligh...

http://p2p-microlending-blog.zidisha.org/2014/03/29/spotligh...

http://p2p-microlending-blog.zidisha.org/2014/04/06/an-agele...